USD/JPY now focused on 106.80 – UOB

The research team at UOB Group now expects USD/JPY to test the 106.80 area on a break above the 106.00 handle.

Key Quotes

“USD is rallying strongly and is quickly approaching the major 106.00 resistance. A break above this level would shift the focus to 106.80 even though this level is likely out of reach for now”.

“The anticipated USD strength has been more rapid and certainly move impulsive than expected”.

“A break above 106.00 would shift the focus to 106.80, the high seen on the day of Brexit. In other words, there is no change our bullish USD view but the stop-loss is adjusted higher to 104.00 from 102.40 (104.80 is already a strong short-term support)”.